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| | London Market Report |  | | FTSE 100 | Euronext | Dax perf | CAC 40 |  |  |  |  | | Please click on the images to view our interactive charts | | | London open: Stocks track losses on Wall Street - FTSE 100 pulls back from two-week high
- Babcock drops after acquisition, Tullow disappoints
- Utilities fall after Ofgem report
- UK and US data on tap today
techMARK 2,770.54 -0.44%
FTSE 100 6,567.22 -0.58%
FTSE 250 16,203.40 -0.30%
Falls from Babcock, Tullow Oil and utility stocks were weighing on UK markets on Thursday morning as the FTSE 100 pulled back from a two-week high.
The Footsie was 0.6% lower at 6,567 in early trading. London's benchmark index inched higher to close at 6,605.3 on Wednesday, its highest finish since March 12th.
UK stocks were tracking losses on Wall Street overnight after President Barack Obama denounced Russia's actions in Crimea. Speaking in Brussels, Obama warned that the US would impose "more sanctions" on Russia if it continues to escalate the crisis in Ukraine following last week's annexation of Crimea.
"If Russia stays on its current course the costs for the Russian economy will continue to grow," he said.
Heavy falls from Facebook and a disappointing stock market debut from King Digital Entertainment also dampened sentiment in New York, along with data which showed that spending on US business investment fell for the fourth time in six months.
Investors were also showing caution ahead of a string of economic data today, including retail sales figures in the UK, and jobless claims, economic growth and new home sales in the US.
Babcock, Tullow, utilities
Engineering group Babcock was a heavy faller this morning after agreeing to buy helicopter services provider Avincis for £920m. The company, which will also assume Avincis' net debt of £705m through a new debt facility of its own, will fund the purchase with a £1.1bn rights issue and will need to put the acquisition to shareholders at a general meeting.
Oil explorer Tullow also fell after a drilling update on its blocks onshore Kenya as it revealed that exploration wells Emong-1 and Etuko-2 were unsuccessful.
Utility peers SSE and Centrica were lower after UK energy regulator Ofgem referred the 'big six' energy companies for a full-scale competition investigation that could see them broken up.
The heavyweight mining sector was also out of favour this morning as stocks tracked metal prices lower. Antofagasta, Fresnillo and Anglo American were among the worst performers.
Glencore Xstrata was also being weighed down by a ratings cut by Jefferies from 'buy' to 'hold'. The broker said the downgrade was "in light of poor seaborne coal fundamentals". |
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| FTSE 100 - Risers
Johnson Matthey (JMAT) 3,241.00p +0.31%
RSA Insurance Group (RSA) 88.05p +0.28%
Experian (EXPN) 1,076.00p +0.19%
Associated British Foods (ABF) 2,840.00p +0.18%
WPP (WPP) 1,204.00p +0.17%
BG Group (BG.) 1,105.00p +0.14%
British Sky Broadcasting Group (BSY) 917.00p +0.11%
Melrose Industries (MRO) 297.80p +0.07%
Imperial Tobacco Group (IMT) 2,431.00p +0.04%
FTSE 100 - Fallers
Babcock International Group (BAB) 1,303.00p -4.61%
Tullow Oil (TLW) 750.50p -3.41%
SSE (SSE) 1,483.00p -2.31%
Aggreko (AGK) 1,484.00p -2.30%
Fresnillo (FRES) 856.00p -1.89%
Standard Life (SL.) 392.60p -1.85%
Burberry Group (BRBY) 1,401.00p -1.68%
Anglo American (AAL) 1,464.50p -1.65%
Antofagasta (ANTO) 820.50p -1.62%
Group (VOD) 219.70p -1.55%
FTSE 250 - Risers
Computacenter (CCC) 656.00p +2.50%
Hellermanntyton Group (HTY) 318.60p +2.12%
Cairn Energy (CNE) 170.50p +2.03%
Tullett Prebon (TLPR) 281.10p +1.41%
Dechra Pharmaceuticals (DPH) 669.00p +1.29%
WH Smith (SMWH) 1,195.00p +1.19%
International Public Ltd. (INPP) 129.10p +1.18%
Millennium & Copthorne Hotels (MLC) 568.50p +1.16%
Kazakhmys (KAZ) 256.00p +1.07%
F&C Commercial Property Trust Ltd. (FCPT) 117.80p +1.03%
FTSE 250 - Fallers
Evraz (EVR) 66.80p -3.47%
IP Group (IPO) 205.80p -2.74%
Partnership Assurance Group (PA.) 131.10p -2.16%
Domino's Pizza Group (DOM) 535.00p -2.01%
African Barrick Gold (ABG) 243.30p -2.01%
Ferrexpo (FXPO) 147.40p -1.93%
Centamin (DI) (CEY) 51.35p -1.82%
Essar Energy (ESSR) 67.85p -1.67%
Genus (GNS) 983.50p -1.65% |
| | UK Event Calendar | | Thursday March 27
QUARTERLY PAYMENT DATE
Royal Dutch Shell 'A', Royal Dutch Shell 'B', Total SA
INTERNATIONAL ECONOMIC ANNOUNCEMENTS
Bloomberg Consumer Confidence (US) (13:45)
Continuing Claims (US) (12:30)
GDP (Final) (US) (12:30)
Initial Jobless Claims (US) (12:30)
M3 Money Supply (EU) (09:00)
Pending Homes Sales (US) (14:00)
Speech President St.Louis Fed
National CPI (JP) (23:30)
Pending home sales (US) (14:00)
M3 Money supply (EZ) (09:00)
Q4
Signet Jewelers Ltd.
GMS
Alba Mineral Resources, Kada Technology Holdings Ltd (DI)
FINALS
Afren, Biome Technologies, Churchill China, Eurasia Drilling Co Ltd GDR (Reg S), Graphite Enterprise Trust, Henry Boot, Hilton Food Group, IFG Group, International Public Partnerships Ltd., JKX Oil & Gas, Personal Group Holdings, Photonstar LED Group, Public Power GDR SA (Reg S), Signet Jewelers Ltd., Skyepharma, Stock Spirits Group , Talvivaara Mining Company (CDI)
ANNUAL REPORT
RPS Group
EGMS
Banco de Chile ADR
AGMS
Banco de Chile ADR, Blue Star Capital, Electronic Processing, Elephant Capital, Independent Inv Trust, Jarvis Securities, MCB Bank Ltd GDR (Reg S), One Media IP Group
TRADING ANNOUNCEMENTS
Compass Group, Daily Mail and General Trust A (Non.V), London Stock Exchange Group, Thomas Cook Group
UK ECONOMIC ANNOUNCEMENTS
Internet Retail Sales (09:30)
Retail Sales (09:30)
|
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| | Europe Market Report | | | | FTSE 100 | Euronext | Dax perf | CAC 40 |  | | | | | | Europe open: Stocks slide on Crimea crisis - US and EU consider tougher sanctions against Russia
- UK retail sales and US GDP data out later
- RBS and Santander US units fail Fed's stress tests
FTSE 100: -0.53%
DAX: -0.33%
CAC 40: -0.45%
FTSE MIB: -0.31%
IBEX 35: -0.33%
Stoxx 600: -0.36%
European stocks snapped a two-day rally on concerns over the turmoil in Crimea.
US President Barack Obama said in Brussels yesterday that the US and its European allies stand united against Russia's attempts to divide the West and destabilise Ukraine.
He said Russian President Vladimir Putin was mistaken if he thought he could get away with the annexation of Crimea as it had violated international law.
The US and the European Union (EU) have agreed to work together to prepare possible tougher economic sanctions in response to Russia's behaviour in Ukraine.
The International Monetary Fund (IMF) is expected to announce a rescue package for Ukraine of about $15bn as early as today in hopes that the initial aid payments could be made by the end of April.
Ukraine's interim government said it will raise gas prices for domestic consumers by 50% in an effort to secure aid from the IMF.
UK retail sales, US GDP
A report on UK retail sales is projected to show a 2.9% year-on-year increase in February following a 4.8% rise a month earlier.
In the US, a gross domestic product report will be out later in the session and is tipped to register an annualised 2.7% growth in the fourth quarter, up from 2.4% the previous quarter.
Separate data may show initial jobless claims rose to 323,000 in the week ended March 22 from 320,000 the prior period, according to analysts' forecasts.
A report on pending home sales is expected to show a 8.5% year-on-year drop in February following a 9.1% decrease a month earlier.
RBS and Santander fail US stress test
The UK's Royal Bank of Scotland and Spain's Santander slumped after their US units failed the Federal Reserve's stress test.
H&M declined as the European fashion retailer reported a rise in first quarter net income that missed market predictions.
Babcock International Group dropped as the engineering-services company agreed to buy private equity-owned Avincis for £920m to expand in helicopter servicing.
United Internet gained after the German provider of phone and internet services posted a rise in 2013 earnings before interest, taxes, depreciation and amortisation (EBITDA) on an increase in sales.
Raiffeisen Bank International advanced after the Austrian bank reported an increase in fourth-quarter net income that exceeded analysts' estimates.
The euro dropped 0.15% to $1.3761.
Brent crude futures fell $0.150 to $106.870 per barrel, according the ICE. |
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| | US Market Report | | US close: Obama's warning to Russia sparks late sell-off - Obama warns Russia over Ukraine
- Durable goods jump, investment down
- Facebook drops after Oculus buy
- King Digital drops sharply after debut
Dow Jones: -0.60%
Nasdaq: -1.43%
S&P 500: -0.70%
A positive start turned into a steep sell-off on Wall Street on Wednesday after President Barack Obama denounced Russia's actions in Crimea.
Heavy falls from Facebook and a disappointing stock market debut from King Digital Entertainment also dampened sentiment in New York, along with data which showed that spending on US business investment fell for the fourth time in six months.
The Dow Jones Industrial Average fell 0.6%, the S&P 500 declined 0.7%, while the Nasdaq dropped 1.4%, with all three indices erasing earlier gains.
Speaking in Brussels, Obama warned that the US would impose "more sanctions" on Russia if it continues to escalate the crisis in Ukraine following last week's annexation of Crimea. "If Russia stays on its current course the costs for the Russian economy will continue to grow," he said.
"Currently the sanctions are seen as weak, but are likely to be significantly ramped up in the next few days if Russia do not comply," said Chief Market Analyst James Hughes from Alpari.
Durable goods
Orders for durable goods jumped by 2.2% in February to a seasonally adjusted $229.4bn, according to data from the Commerce Department, surprising analysts who had expected a rise of just 0.8%.
However, the positive surprise was mainly as a result of large increases in the volatile transportation sector. Excluding this, goods orders rose by a more modest 0.2%, lower than the 0.3% gain expected by the market.
As such, core capital goods orders (ex-defence and aircraft) - seen as an important measure of business investment - actually dropped by 1.3% over the month; analysts had expected a 0.5% rise.
In other economic data, the Markit services purchasing managers' index rose to 55.5 in March, up from 53.3 the month before and ahead of the consensus forecast for 54.
Markets were also reacting to comments from a Federal Reserve official who said the US jobless rate will fall below 6% this year, compared with the 6.7% rate registered in February.
Facebook drops on Oculus deal, King Digital disappoints
Facebook erased early gains and swung sharply into the red as investors reacted to the social network group's $2bn acquisition of Oculus VR Inc, which makes virtual-reality headsets.
However, shares in Oculus VisionTech and Oculus Innovative Sciences surged with analysts citing a case of mistaken identity.
King Digital Entertainment, the maker of the popular Candy Crush Saga game, dropped sharply in its debut on the New York Stock Exchange on Wednesday. The stock was priced at $22.50 per share on Tuesday, the mid-point of the expected range, but finished 15.6% lower to $19.
Endocyte declined after the biotechnology company said it will offer 4.5m shares to raise funds for working capital, research and development and clinical-trial costs.
Tesla Motors climbed as the Ohio Senate committee approved a bill that permits the company to operate retail stores.
In after-hours trade, Citigroup dropped after its capital plan was rejected by the Federal Reserve, which said it did not make enough progress in improving risk management and control practices.
S&P 500 - Risers
DIRECTV (DTV) $77.34 +5.70%
Quest Diagnostics (DGX) $57.99 +5.55%
Tenet Healthcare Corp. (THC) $40.93 +5.22%
Laboratory of America Holdings (LH) $98.64 +4.15%
PVH Corp. (PVH) $121.43 +3.57%
Bristol-Myers Squibb (BMY) $52.66 +3.17%
Legg Mason Inc. (LM) $47.90 +3.12%
GameStop Corp. (GME) $38.90 +2.94%
Baxter International Inc. (BAX) $70.08 +2.47%
Lorillard Inc. (LO) $53.39 +1.95%
S&P 500 - Fallers
International Game Technology (IGT) $13.62 -8.28%
Facebook Inc. (FB) $60.38 -6.94%
First Solar Inc. (FSLR) $68.49 -4.95%
Citrix Systems Inc. (CTXS) $58.16 -4.50%
TripAdvisor Inc. (TRIP) $92.71 -3.91%
F5 Inc. (FFIV) $104.65 -3.84%
EQT Corp. (EQT) $95.29 -3.83%
Newmont Mining Corp. (NEM) $23.07 -3.55%
Staples Inc. (SPLS) $11.21 -3.53%
Goodyear Tire & Rubber Co. (GT) $25.25 -3.35%
Dow Jones I.A - Risers
Merck & Co. Inc. (MRK) $56.02 +1.50%
Pfizer Inc. (PFE) $32.18 +1.13%
Unitedhealth Group Inc. (UNH) $81.54 +0.54%
Chevron Corp. (CVX) $117.71 +0.53%
Dow Jones I.A - Fallers
JP Morgan Chase & Co. (JPM) $59.90 -1.69%
Microsoft Corp. (MSFT) $39.79 -1.36%
American Express Co. (AXP) $89.66 -1.30%
Visa Inc. (V) $215.68 -1.25%
International Business Machines Corp. (IBM) $192.62 -1.24%
Walt Disney Co. (DIS) $78.62 -1.17%
E.I. du Pont de Nemours and Co. (DD) $66.51 -1.07%
Goldman Sachs Group Inc. (GS) $161.73 -0.93%
Wal-Mart Stores Inc. (WMT) $76.23 -0.83%
Caterpillar Inc. (CAT) $97.80 -0.80%
Nasdaq 100 - Risers
Dish Corp. (DISH) $62.09 +6.28%
DIRECTV (DTV) $77.34 +5.70%
Vimpelcom Ltd Ads (VIP) $8.86 +2.49%
Nxp Semiconductors Nv (NXPI) $58.09 +2.00%
Garmin Ltd. (GRMN) $55.36 +1.65%
Mattel Inc. (MAT) $39.16 +1.06%
Cognizant Technology Solutions Corp. (CTSH) $49.10 +1.05%
Seagate Technology Plc (STX) $55.55 +0.76%
Henry Schein Inc. (HSIC) $116.60 +0.57%
Intuitive Surgical Inc. (ISRG) $424.66 +0.41%
Nasdaq 100 - Fallers
Facebook Inc. (FB) $60.38 -6.94%
Illumina Inc. (ILMN) $139.99 -5.34%
Citrix Systems Inc. (CTXS) $58.16 -4.50%
TripAdvisor Inc. (TRIP) $92.71 -3.91%
F5 Networks Inc. (FFIV) $104.65 -3.84%
Staples Inc. (SPLS) $11.21 -3.53%
Tesla Motors Inc (TSLA) $212.96 -3.39%
Amazon.Com Inc. (AMZN) $343.41 -3.19%
Mylan Inc. (MYL) $49.16 -3.06%
Micron Technology Inc. (MU) $22.83 -2.97% |
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| | Newspaper Round Up | | Thursday newspaper round-up: House prices, HSBC, Ofgem The Head of the Office for Budget Responsibility yesterday warned that given the very rapid house price rises in some parts of Britain one may see "bubbly activity", such as people willing to buy 'off-plan' or when they do not intend to live in the homes which they are purchasing. That comes as the average price of a London home is expected to see a steep increase over the next six years, to 650,000 pounds from 458,000, The Daily Mail says.
In what amounts to a very embarrassing scandal for Royal Bank of Scotland and HSBC, the US central bank has forbid their American units from paying higher dividends or launching share buybacks this year. That comes after the Federal Reserve found "significant deficiencies" in their capital planning processes. They are not alone however, financial giant Citigroup´s 2014 dividend and buyback plans were also blocked, The Times writes.
Energy regulator Ofgem wants the Competition and Markets Authority (CMA), which comes into force next month, to investigate if big suppliers should be forced to divide their generation and supply businesses. More specifically, it wants a study on how more suppliers can be encouraged to enter the market and how best to take advantage of the roll-out of smart meters. As a part of that effort Ofgem warned that "any new serious breach of the rules which comes to light will be likely to attract a higher penalty," The Scotsman says.
Legal&General boss Nigel Wilson sees the at-retirement market for individual annuities shrinking to just £2.8bn after 2015 from £11.9bn once the reforms in the last Budget are implemented. In essence, many people will choose to take responsibility for their retirement savings instead of entering into a lifetime contract. He also believes that more of them will turn to their properties to generate income, either by renting them or through equity release products, The Daily Mail reports.
Bank of America has reached a $9.3bn settlement with the FHFA, covering roughly $57.5bn worth of mortgage backed securities, over allegations that the bank misrepresented the securities to the government chartered mortgage finance giants Fannie Mae and Fredie Mac. As part of the deal the lender will have to repurchase $3.2bn of those instruments at fair market value. That will hit its bottom line for the first quarter with a $3.7bn charge. Its former Chief Executive has been banned from being a director of any public company for three years, according to The Times.
Swiss banking giant UBS has suspended another four traders as part of an international investigation into the possible manipulation of the foreign exchange market. Some authorities believe that the scope of the scandal could be larger than that provoked by the rigging of the Libor rate. According to Bloomberg, the members of staff were located in New York, Singapore and Switzerland. The UK regulator announced its investigations in October, as did the US Department of Justice, The Times writes. | | |
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